Shriram Properties trims long-term profit targets as margins soften
Management lowered its Mission 1234 profit goal to ₹250 crore PBT and cut margin expectations to 8-9% during its latest earnings call.
— 3 earlier stories on Shriram Properties Ltd. →What's new
- FY27 sales value guided at ₹3,300-3,500 crore with 3,750-3,800 unit handovers.
- Mission 1234 profit target revised to ₹250 crore PBT from a prior PAT goal.
- Management maintains FY28 aspirations of ₹5,000 crore in sales and ₹2,500 crore in revenue.
Why this matters
The shift from a PAT-based profit target to a lower PBT goal, alongside a margin cut, signals a recalibration of profitability expectations. While the company points to a large project pipeline, the downward revision of core financial targets suggests a more cautious outlook on near-term earnings quality.
What we're watching
- Whether the company hits its FY27 collection target of ₹2,100-2,200 crore.
- Execution progress on the ₹15,000 crore revenue potential pipeline.
- Any further adjustments to the Mission 1234 roadmap.
The full read
Shriram Properties used its recent conference call to reset expectations for its long-term Mission 1234 goals. The company downgraded its profit target to ₹250 crore in profit before tax, moving away from its previous ₹250-280 crore profit after tax objective. Simultaneously, management lowered its normalized PAT margin target to 8-9%, down from the earlier 10% benchmark.
Margins are tightening.
Despite these revisions, the company remains focused on its FY28 aspirations of ₹5,000 crore in sales and ₹2,500 crore in revenue, while management points to a project pipeline with ₹15,000 crore in revenue potential over the next five to seven years to support these figures. The shift in profit metrics and margin guidance suggests that the company is tempering its bottom-line outlook even as it pursues aggressive top-line growth.
Questions answered
- What is the new Mission 1234 profit target?
- The target is now ₹250 crore in profit before tax. This replaces the previous goal of ₹250-280 crore in profit after tax.
- How has the company adjusted its margin expectations?
- Management lowered its normalized PAT margin target to 8-9%. The previous target was 10%.
- What are the key operational targets for FY27?
- The company expects to achieve ₹3,300-3,500 crore in sales value and ₹2,100-2,200 crore in collections. It also plans to complete 3,750-3,800 unit handovers.
- What is the long-term revenue potential mentioned by management?
- Management claims a project pipeline with over ₹15,000 crore in revenue recognition potential over the next five to seven years. They maintain an aspiration to reach ₹5,000 crore in sales and ₹2,500 crore in revenue by FY28.
Story so far
All notes on SHRIRAMPPS →- 25 May 2026 · 6:26 PM IST Shriram Properties trims long-term profit targets as margins soften
- today Shriram Properties crosses ₹100 cr profit, guides for ₹3,300-3,500 cr sales in FY27
- 5d ago Shriram Properties hits record revenue of ₹1,357 crore
- 5d ago Shriram Properties targets 49% sales growth in FY27